New elections loom in Greece

One week after an inconclusive election, Greece appears poised on the verge of another crisis.

On Saturday, the country's Socialist party became the third - and final - bloc to announce it had failed to form a coalition government.

Unless the nation's president can broker a deal, Greeks will head back to the polls next month - a prospect that's not popular here in Athens.

(SOUNDBITE) (Greek) PEGGY REPPA, 42, SCHOOL TEACHER, SAYING:

"I don't think they will bring results. The problem is that people's lives are very hard. We have been brought to our knees economically, financially, emotionally. There is no development, there is no hope."

With Greece on the verge of bankruptcy, the deadlock has far reaching implications.

It could lead to the scrapping of the 130 billion bailout package engineered by other Euro-zone countries - or see the nation exit the monetary union entirely.

Some say the only way to end Greece's political impasse is with an election that gives one party a strong mandate.

(SOUNDBITE) (Greek) COSTAS, PENSIONER, 60, SAYING:

"Since there is not a solution, having new elections would be better. At least the people will be able to decide. I believe it would be better to have new elections. I don't think with the help of (Greek President) Papoulias the solution will be found."

One recent opinion poll found the SYRIZA party - which opposed the bailout - was likely to gain the most from new elections.

The far-left party had the support of 28 percent of voters - a number that is still well short of a majority.

Andrew Raven, Reuters